There are several ways to take out equity including:
We discuss each in more details below. The option you choose will depend on:
Your property is worth 700,000. The existing first mortgage = 300,000.
If you qualify for an equity take out, the lenders would be willing to lend you 80% of the appraised value of the property. That is 80% * 700,000 = $560,000
With your current mortgage at $300,000, you have 3 options of accessing the difference of $260,000
- Through a secured line of credit = $260,000
- Through increasing your current mortgage by $260,000 and refinancing the total new mortgage amount at a lower rate (full refinance )
- Through keeping your current mortgage intact and setting up a new parallel mortgage at a new rate for $260,000 (blend and extend )
We can help you assess the best equity take out option for your situation and save you thousands in the process.
Contact us for a complimentary consultation to explore your options.